GOLETA, Calif., Jan. 29, 2013 (GLOBE NEWSWIRE) -- Community West Bancshares (Community West or the Company), (Nasdaq:CWBC), parent company of Community West Bank (Bank), today reported it earned $2.3 million in the fourth quarter of 2012 (4Q12) compared to net income of $613,000 in third quarter of 2012 (3Q12) and a net loss of $8.6 million in the fourth quarter a year ago (4Q11). For the full year, Community West reported net income of $3.2 million compared to a net loss of $10.5 million a year ago.
"Our team's success in executing our Strategic Plan on schedule allowed us to end a highly successful year with three quarters of profitability behind us and restore the Bank to stable footing," stated Martin E. Plourd, President and Chief Executive Officer. "Our 2013 focus is on addressing growth in a responsible manner that supports lending in the communities we serve and to continue to work diligently to improve asset quality and reduce problem assets."
The Company's $895,000 net reduction in the provision for loan losses in 4Q12 was primarily the result of two factors: net quarterly loan loss recoveries of $304,000 and a $17.1 million decrease in total loans held for investment as problem assets continue to be resolved. The ratio of the allowance for loan losses to total loans held for investment remained basically unchanged – 3.66% at December 31, 2012 compared to 3.65% as of September 30, 2012.4Q12 Financial Highlights
- Nonaccrual loans declined 32.7% to $22.4 million at December 31, 2012, compared to $33.3 million at September 30, 2012.
- Net income of $2.3 million in 4Q12.
- Earnings of $0.26 per diluted share in 4Q12.
- Net interest margin continued to be strong and was 4.91% in 4Q12, compared to 4.65% in 3Q12 and 4.84% in 4Q11.
- Net real estate owned (REO) and repossessed assets, after subtracting the SBA guarantee, decreased to $1.9 million at December 31, 2012 compared to $3.8 million three months earlier and $5.6 million a year earlier.
- The total allowance for loan losses equaled 3.66% of total loans held for investment at December 31, 2012, compared to 3.65% at September 30, 2012 and 3.24% a year ago.
- Community West Bank's capital ratios continue to strengthen - Total risk-based capital ratio was 15.27% and Tier 1 leverage ratio was 10.69% at December 31, 2012, an increase compared to Total risk-based capital ratio of 13.89% and Tier 1 leverage ratio of 9.84% at September 30, 2012. The Bank's regulatory agreement requires that ratios of 12% and 9%, respectively, be maintained.